Compound Interest Calculator

See your earnings grow over time.

How did we calculate your compound interest?

Our compound interest calculator allows you to understand the value of your investment over time, taking into account the power of compounding interest. Compound interest is when the interest that accrues to your account also earns interest, hence potentially accelerating the growth of your investments over time.

Initial Investment

This is the principal amount, or the initial amount of money you have invested or plan to invest. By entering this amount, the calculator will compute the future value of your investment, taking into consideration other parameters.

Monthly Contribution

This refers to the amount you plan to contribute to your investment on a monthly basis. By consistently adding to your investment, you increase its growth potential.

Time Horizon

The time horizon is the length of time you plan to keep your money invested. Generally, the longer your investment period, the more potential there is for your investments to grow, given the power of compound interest.

Interest Rate

The interest rate represents the percentage of return you expect to earn on your investment annually. It is essential to have a realistic assumption of the rate of return when using this calculator.

Results

Once you've entered all the necessary parameters, hit Calculate Compound Interest. The tool will calculate the future value of your investment, assuming the interest is compounded monthly. The output, Your investment in X years, shows the value of your initial investment plus your monthly contributions over your specified time horizon, given the assumed interest rate. Keep in mind that investing always involves risk, and the actual rate of return on investments can vary widely over time, especially for long-term investments. Also, this tool is just an estimator. It might not reflect your exact situation or some tax implications. It's always a good idea to consult with a qualified professional when making major financial decisions.

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